Saudi financial support for Pakistan has increased by $3 billion, with the new disbursement expected next week, while Riyadh has also agreed to extend its existing $5 billion deposit for a longer period. Finance Minister Muhammad Aurangzeb said the package comes at a critical time for Pakistan’s external financing needs and will help strengthen foreign exchange reserves and the external account.
Aurangzeb spoke to journalists on the sidelines of the World Bank-IMF Spring Meetings 2026 in Washington. He said the support would provide timely relief as Pakistan prepares to manage major external repayments.
The announcement comes as Pakistan prepares to repay a roughly $3 billion loan to the United Arab Emirates after failing to secure a rollover for the first time in seven years. The repayment is due by the end of the month and is putting pressure on reserves, which stand at about $16 billion, enough to cover around three months of imports.
Aurangzeb said the government remains committed to maintaining reserves in line with its IMF-supported programme. He said Pakistan is targeting around $18 billion in reserves by the end of the current fiscal year, equal to roughly 3.3 months of import cover.
Saudi Deposit Extension Adds Financial Stability
Aurangzeb also said the existing $5 billion Saudi deposit will no longer depend on annual rollover arrangements. Instead, Saudi Arabia will extend it for a longer term, providing Pakistan with greater financial stability and greater certainty in its external financing plan.
He described Pakistan’s recent repayment of its $1.4 billion Eurobond as a “non-event” and said the government remains committed to servicing all upcoming external obligations on time under a disciplined financing strategy.
The finance minister said he held a detailed meeting in Washington with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, alongside the State Bank governor and Pakistan’s ambassador to the United States. He also thanked Crown Prince Mohammed bin Salman, Al-Jadaan and the Saudi vice finance minister for helping finalise the package.
Aurangzeb also credited Pakistan’s leadership, including Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, Ishaq Dar and other economic officials, for helping secure the support. He said international financial institutions and investors are showing growing confidence in Pakistan, while the country continues to advance funding plans such as the Global Medium-Term Note programme and its first Panda Bond issuance.
